Bitcoin ETF Experiences First Outflow in 15 Days Amid Institutional Hesitation

On July 1st, American spot-based Bitcoin exchange-traded funds (ETFs) experienced an outflow of $342.2 million, marking the end of a 15-day inflow streak totaling $4.7 billion.

The most prominent instrument, BlackRock’s IBIT, saw a flat flow after a positive trend of $3.8 billion over the previous 15 days. The largest outflow was recorded by Fidelity’s FBTC, amounting to $172.7 million, followed by Grayscale’s GBTC ($119.5 million), ARK Invest’s ARKB ($27 million), and Bitwise’s BITB ($23 million).

Valentin Fournier, chief analyst at BRN, commented, «This is a pause in institutional accumulation, but it doesn’t necessarily indicate a trend reversal.»

Since its launch in January 2024, U.S. Bitcoin ETFs have attracted a total of $48.9 billion, with inflows of $13.5 billion this year alone. Currently, these companies manage assets worth $128 billion.

At the time of writing, Bitcoin is trading at $107,481, reflecting a 0.8% increase over the day, according to CoinGecko.

Vincent Liu, Chief Investment Officer at Kronos Research, stated, «Markets are currently in a consolidation phase. Participants are awaiting clarity from the unemployment data on July 3rd.»

Fournier believes that Bitcoin’s consolidation within the range of $105,000 to $110,000 is a bullish signal, especially if regulatory clarity emerges or new institutional players enter the market.

Meanwhile, funds based on the second-largest cryptocurrency, Ethereum, recorded an inflow of $40.7 million, led by BlackRock’s ETHA with $54.8 million.

This marks the third consecutive day of positive inflows, totaling $150 million during this period. Since launching in July 2024, ETH ETFs have attracted $4.3 billion.

The price of Ethereum stands at $2,443, showing a slight decline of 0.1% over the last 24 hours.

The outflows from Bitcoin ETFs coincided with a statement by Federal Reserve Chairman Jerome Powell regarding the intent to maintain a tight monetary policy, linking the regulator’s stance to trade tariffs imposed by President Donald Trump.

Powell indicated that the Fed would have already begun lowering interest rates if not for the tariffs that have raised inflation forecasts.

Experts have urged against overreacting to the one-day outflow. MEXC exchange analyst Sean Young described it as «simply a pause.» He noted that following inflows nearing $5 billion, investors took a moment to reflect, and the Fed’s signals about sustaining high rates have reinforced this trend.

Young pointed out that the Fed’s hawkish policy dampens demand for risk assets, including Bitcoin.

He also commented on the inflows to spot-based Ethereum ETFs, suggesting that the trend indicates investors are not leaving the market but are instead being more selective.

«One day of unusual trading in the ETF market does not negate the billions that have already flowed in,» the analyst concluded.

It’s worth noting that from June 21 to June 27, inflows into crypto funds amounted to $2.7 billion.